Best Automated Trading Software for Beginners (2025)

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Go to broker’s website Plus500 Overview

If you're too busy to read the entire article and want a quick answer, the best algorithmic trading software for beginners is Plus500. Why? Here are its key advantages:

Is legit in your country (Identified as United States )
Has a good user satisfaction score 6.83 out of 10
A wide range of tools
Fast execution speed

Go to broker’s website Plus500 Overview

Below, we'll explain in more detail why we believe this and how brokers were evaluated.

Best algorithmic trading software for beginners:

Plus500 - Best premium client support (personal manager, exclusive analysis, webinars)
Pepperstone - Best for scalping strategies (spread from 0 pips)
OANDA - Best for trading with advanced technical analysis tools (TradingView charts support)
FOREX.com - Diverse range of tradable assets (80+ currency pairs)
Interactive Brokers - Best broker for international investors (assets from 33 countries, 150+ markets)

If you’re new to trading or have never traded before, you might wonder where to start. The good news is that there are numerous automated trading software options designed specifically for beginners. In this guide, we’ll explain how algorithmic trading works, explore its benefits, shortlist the best platforms for automated trading, and highlight key considerations to help you choose the right software.

Best automated trading for beginners

Automated trading offers several advantages, including increased efficiency, reduced emotional bias, and the ability to capitalize on fleeting market opportunities. However, it is not without its challenges. Technical glitches, poorly configured algorithms, and inadequate real-time data can result in significant losses. Moreover, implementing algorithmic trading requires substantial resources, such as high-performance computers, specialized software, and reliable market data feeds.

When used correctly, algorithmic trading can be a powerful tool for optimizing trading strategies, reducing manual intervention, and enhancing profitability. This can be done by carefully selecting the platform you use for automated trading. We suggest you to choose from the list below:

Best brokers with access to algorithmic trading
	Min. deposit, $	Investor protection	Regulation level	Open an account
Plus500	100	€20,000 £85,000 SGD 75,000	Tier-1	Open an account Your capital is at risk.
Pepperstone		£85,000 €20,000 €100,000 (DE)	Tier-1	Open an account Your capital is at risk.
OANDA		£85,000 SGD 75,000 $500,000	Tier-1	Open an account Your capital is at risk.
FOREX.com	100	£85,000	Tier-1	Study review
Interactive Brokers		$500,000 £85,000	Tier-1	Open an account Your capital is at risk.

What is automated trading?

Automated trading, or algorithmic trading, is the use of computer programs to execute trades automatically based on predefined rules. These programs analyze market data, identify trading opportunities, and place orders without human intervention. The goal is to increase efficiency, eliminate emotional decision-making, and capitalize on market movements quickly and consistently. Automated trading is widely used for strategies like trend following, arbitrage, and scalping, making it a powerful tool for both beginners and experienced traders.

Let’s explore a straightforward algorithmic trading strategy that integrates two widely used technical indicators: the trend component of the Ichimoku indicator (specifically, the Kumo Cloud) and the Stochastic oscillator. This example illustrates how algorithms analyze market conditions and execute trades automatically.

Imagine an algorithm designed to generate a buy signal under specific conditions. The algorithm monitors the price as it interacts with the Ichimoku Kumo Cloud. A buy signal is triggered when the price moves upward, breaking through the Kumo Cloud from below, and the Stochastic oscillator value is above 50. This combination suggests that the asset's price is gaining upward momentum, signaling a potential increase.

Once these conditions are met, the algorithm automatically sends a buy order. It continues to monitor the market for signals to exit the position.

To close the long position, the algorithm looks for two key reversal indicators:

The price dips back below the Kumo Cloud, indicating a shift in the trend direction.
The Stochastic oscillator lines move downward from the overbought zone (above 80) and cross below the 50 level.

When these criteria are satisfied, the algorithm exits the buy position and, if specified, generates a sell order to capitalize on the anticipated downward movement.

Example of algorithmic trading

How does an algorithmic system work?

An algorithmic system is a pre-programmed set of rules designed to analyze market data, generate trade signals, and execute orders automatically. Key components of an algorithmic trading strategy include:

Identifying entry and exit points. Algorithms decide the optimal time to buy or sell.
Price analysis. Evaluates historical data to predict future trends.
Risk management rules. Sets stop-loss and take-profit levels to minimize losses.
Order placement. Determines where and how to execute trades.

This process allows traders to execute trades quickly, consistently, and based on data-driven insights.

How to select the right automated trading software

To select a software that aligns with your goals and maximizes your trading potential, consider these key factors:

Real-time data integration. Effective trading software must be able to process real-time market and company data seamlessly. The software should integrate with reliable data providers and offer customizable options to suit your trading needs.
Low latency for faster execution. Latency, or the time delay in sending and executing trade signals, can significantly impact profitability in fast-moving markets.
Customization and flexibility. Good algorithmic trading software should allow you to tailor its features to your trading strategies. Look for platforms that enable you to set specific parameters, adjust rules, and implement strategies that match your goals.
Robust backtesting tools. One of the most critical features of any automated trading software is backtesting. This allows you to test your strategies using historical data to determine their effectiveness before risking real money.
Intuitive user interface. A complex trading system can be intimidating, especially for beginners. Opt for software that offers a user-friendly interface with clear navigation and easy setup.
Scalability for multiple strategies. The ability to run multiple trading strategies simultaneously is a crucial feature for advanced traders.
Credibility and community feedback. Research user reviews and community feedback to gauge the reliability of the software. Insights from real users provide valuable information about the software’s strengths and weaknesses.
Free demo version. Many reputable trading platforms offer a free trial or demo version. Use this opportunity to test the software in simulated market conditions.

Which automated trading software should beginners use?

The main types of trading software suitable for beginners are:

Strategy builders. These platforms allow beginners to create and test strategies without coding knowledge. They often include visual interfaces and pre-designed templates.
Copy trading systems. Ideal for those who prefer to replicate the strategies of experienced traders, making it easier to learn while earning.
Comprehensive platforms. Offer a combination of automated trading tools, educational resources, and analytics to cater to both beginners and advanced traders.

Pros and cons of using automated trading software

Efficiency. Automated trading processes market data faster than manual trading, allowing for timely decisions and execution.
Emotion-free trading. It removes the emotional factors that can lead to impulsive or irrational decisions.
Backtesting. Beginners can test strategies on historical data to evaluate their effectiveness before using them in live markets.
Diversification. Enables trading across multiple markets or strategies simultaneously, reducing reliance on a single approach.
Discipline. Automated systems adhere strictly to predefined rules, ensuring consistency even in volatile market conditions.

Over-optimization. Excessive reliance on historical data can lead to strategies that perform poorly in live markets.
Limited discretion. Automated systems lack the human intuition to respond to unexpected market events.
Technical dependence. Breakdowns or failures in the trading system can disrupt trading activities.
Monitoring required. Despite automation, regular monitoring is necessary to ensure the system performs as expected.

Best trading bots to download for free

Trading bots are automated software designed to analyze market conditions and execute trades on behalf of the user. These bots follow predefined rules and strategies, making them an excellent substitute for manual trading.

OctoBot

An open-source cryptocurrency trading bot, OctoBot allows users to create custom strategies for multiple exchanges. Its flexible framework makes it suitable for traders who want to experiment with personalized automation without spending on premium tools.

SMARD

SMARD is a mobile-friendly trading bot that specializes in cryptocurrency markets. It uses a momentum-based algorithm and is ideal for traders seeking a simple and accessible trading tool on their smartphones.

Haasbot

Haasbot is a widely recognized trading bot, particularly in the cryptocurrency world. Though primarily a paid service, it offers some free features, making it a great choice for traders wanting to explore its capabilities before committing to a subscription.

Pionex

Pionex provides 16 free built-in trading bots designed for various strategies, such as grid trading and arbitrage. It is especially appealing for beginners due to its user-friendly interface and low trading fees, allowing traders to maximize profits efficiently.

Fortnite bots

Highly popular in volatile markets, Fortnite trading bots help traders profit from quick price movements. They are easy to customize and are well-suited for users focusing on short-term strategies.

Make sure to test the bots before putting in your money

If you're new to automated trading, don't just follow trends or pick the software everyone else is talking about. Instead, focus on platforms that let you test strategies in safe, controlled environments before putting any money on the line. Look for tools that allow you to practice trading with realistic simulations using historical data. These simulations help you understand how markets work and how strategies perform in different conditions, all without the fear of losing your hard-earned money. Choose software that lets you adjust pre-set trading strategies to match your personal style, so you’re not locked into generic templates.

Another key factor is selecting platforms that offer built-in tools to manage risks automatically. For example, choose software that stops trades if a certain level of loss is reached or alerts you when something unexpected happens in the market. Beginners benefit most from tools that grow with their skills, so find platforms with clear guides and tutorials built into the system. Remember, automated trading is not a "set it and forget it" process. Regularly check how your strategies are performing and make adjustments to improve results as you gain experience.

Conclusion

Algorithmic trading has revolutionized the way traders engage with financial markets, offering tools that simplify decision-making and enhance efficiency. For beginners, starting with user-friendly platforms, testing strategies, and maintaining discipline are key to success. Whether you opt for strategy-building software or copy trading systems, automation opens the door to more consistent and data-driven trading.

FAQs

Is automated trading suitable for beginners?

Yes, many platforms are designed to simplify the process, offering user-friendly interfaces and pre-built strategies.

Is backtesting important for algorithmic trading?

Absolutely! Backtesting helps you evaluate strategies using historical data, minimizing the risk of costly mistakes.

Can I trade without coding knowledge?

Yes, many platforms offer drag-and-drop tools or pre-set algorithms that don’t require programming expertise.

Can I make money with automated trading?

While there’s no guarantee, disciplined use of automated systems can improve trading efficiency and profitability.

Team that worked on the article

Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

Investor

An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.

Backtesting

Backtesting is the process of testing a trading strategy on historical data. It allows you to evaluate the strategy's performance in the past and identify its potential risks and benefits.

Long position

A long position in Forex, represents a positive outlook on the future value of a currency pair. When a trader assumes a long position, they are essentially placing a bet that the base currency in the pair will appreciate in value compared to the quote currency.

Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.

Stochastic Oscillator

The Stochastic Oscillator is a technical indicator used in financial analysis to gauge the momentum of a security's price and identify overbought or oversold conditions by comparing the closing price to a specified price range over a defined period.